Moving average price and returns to vendor

Hello gurus,
I’ve got a question concerning material valuation and returns to vendor.
E.g. we have got 200 pieces of a material with a moving average price of 2 $ each.
Now, what happens if I return 100 of those to my vendor who pays 2.10$ each for them?
In my view, there are several possibilities:
- Nothing happens, the moving average price is not changed at all, value of the goods is 200$ afterwards.
- New value of the goods is 400$ - (100 * 2.10$) = 190 $. This would mean that the moving average price is 1.90 $.
- Last delivered price was e.g. 2.20$, more than 100 pieces were delivered, so the new value of the goods is 400$ - (100 * 2.20$) = 180$, new moving average price is 1.80$.
So my question is: What is standard in SAP?
Thanks
Jens

This is what my thought is
When you return the material to vendor then system take the same valuation as your MAP
and when you buy new goods then it will count based on the
e.g. existing stock is 100 and value is 1000 means valuation is 10 a peice
in you but another 100 at 1200 then valuation is 2200/200 = 11
When a material is subject to moving average price control, the system calculates values for goods movements in the following way:
check this link
http://help.sap.com/erp2005_ehp_02/helpdata/en/8f/d1de34e4cb2300e10000009b38f83b/frameset.htm

Similar Messages

  • Updating the material moving average price in return to vendor process

    Hello,
    Our finance department is saying that the affect on the moving average price in our return to vendor process is wrong.
    At the moment the moving average price is changed according to the material price in the return PO.
    Our financial department says that the moving average price shouldn't be affected at all by a return to vendor.
    Can someone tell me how to customize the system according to this request?
    Thanks,
    Sivan

    Dear Friend,
    In COOIS Report or MB51 report, Select the list as Documented goods movement and in production order field give the production order number and execute. After executing, if any goods receipt has been done for the same than system will show the same with these it will also show the value of the same. If its not showing than go to change layout and select the same.
    Thanks and Regards,
    Jitendra Chauhan

  • Moving average price and standard price

    Dear All,
      Its simple question can any one explains me what is the difference between moving average price and standard price and how the posting will happen with these two price controls and what will get updated.

    Dear Tiru,
    There are two types of price control as below:
    a)Moving Average Price (MAP):
    -If PO and or Invoice price was differ from material master record, the difference was posting
    to stock account. Therefore the valuation price will change.
    b) Difference between a PO price or invoice price and the material master are posted to price
    difference account(PRD). As a result, the price in material master remain same.
    Example:
    Material Master Record:
    Total Qty: 10, Total Value 20, Price 2
    Scenario:
    PO: 10pcs at 2.50 EUR/PC
    Good receipt 10 pc
    Invoice 10 pc at 2.50 eur/pc
    a) MAP:
    Posting:
    Stock Account GR 25 +
    GR/IR Clearing    GR  25 -, IR 25 +
    Vendor Account  IR 25 -
    New Material Master ,Result:
    Total Qty = 20
    Total value = 45
    Price = 2.25
    b) Standard Price:
    Posting:
    Stock Account  GR 20 +
    GR/IR Clearing    GR  25 -, IR 25 +
    Vendor Account  IR 25 -
    Price difference Account(PRD)  GR 5 +
    New Material Master ,Result:
    Total Qty = 20
    Total value = 40
    Price = 2.00
    Hope this help.
    Loke Foong

  • Moving average prices and std prices

    hi friends,
    i have a doubt abt prices...
    which will b assigned for raw materials-standard price? or avg moving price? and why?
    if possible explain clearly about avg.moving price and std.price
    for spit valuation what price we will use??
    help me out..
    thanks in advance...
    venkat

    Standard price are used for products that do not fluctuated frequently.  It is usually used for finished or semi finished products.
    Moving average price are used mainly for raw materials that are purchased externally.  The advantage of using moving average price for your raw materials is that your inventory costs will always reflect the current market cost.
    SAP strongly recommends that you do not select price control V for semi-finished products and finished products, because doing so will very easily cause the calculation of unrealistic valuation prices. SAP recommends: 
    Price control V for raw materials and trading goods; price control S for semi-finished products and products
    We recommend that you only use price control V for materials procured                          
    externally. Materials produced in-house should be subject to a                                 
    standard price control.                                                                        
    Generally all raw materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price (MAP)  because of the accounting practice of accurately valuating the inventory of such materials. These materials are subject to the purchase price fluctuations on a regular basis.
    The semi-finished goods (HALB) and finished products (FERT) are valuated with standard price because of the product costing angle. If these were to be MAP controlled, then finished/semi-finished product valuation would fluctuate due to data entry errors during backflushing of material and labour, production inefficiencies (higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice
    For Split valuated material it is recommended to use Moving average price

  • Moving Average Price and Total Stock not updated for MTO scenario

    We are using MTO with planning strategy 20, individual collective indicator is 1 (individual requirement only) and price control is V for finished goods. We are facing the following problems after we perform GR of above FG from MFBF (Repetitive -run schedule header):
    1)Total Stock field (LBKUM)in Accounting View 1 remain as blank but the sales order stock is appear in Stock Overview screen.
    2)Moving average price does not updated after periodic settlement is carried out.
    It seem that problem can only be resolved if we change the planing strategy to MTS (ex:40), appreciate that if any of you can provide the solution.
    p/s: on ECC5 system.

    Hi,
    Good morning and greetings,
    The standard SAP says as below
    The Raw Materials should have MAP 'V' and the SFG and FG should have the price control as 'S' basically because the standard costing variant PPC1 uses the sequence of Standard Price as the first update at the time of price update and settlement.
    I presume MFBF is used for Repetitive Manufacturing and not for MTO scenario...Repetitive Manfuacturing is MTS scenario...Goods receipt of production order is normally done through MB31.
    If you still want to use the MAP for FG and SFG then you will have to change the costing variant appropriately to pick the MAP first at the time of goods receipt and settlement.
    Please reward points if found useful.
    Thanking you
    With kindest regards
    Ramesh Padmanabhan

  • Moving average price and COPA

    Hi
    We have direct ship process and the material master is set with Price control V. Our objective is not to do standard cost estimate as it is a trading org. However the values from Sales module at the time of billing is to reach COPA value fields.  When we try to release the billing document to accounting, the following error appears:
    "In COPA system tried to valuate a line item using current Standard cost estimate. The system looks for material cost estimate using costing key ZDA."
    Please note that we have many co codes in the same operating concern and all of them use the same costing key ZDA which is "Current standard cost estimate acc to entry in Material master". All of them want Standard cost estimate to be done except this case. Also the material type is common and is assigned to Costing Key ZDA. I  understand because of that it is looking for that. My specific questions are:
    How to do specific settings with respect to this plant/co code?  (We have not set the Plant assignment to Valuation variant).
    What settings are required in Material master?
    How does the costing take place when goods are issued to customer and which field it will update in Material master?
    What plant/co code settings are possible in COPA to avoid the system looking at ZDA.
    Your early reply is appreciated
    Thanks & Regards
    S Jayaram

    Hi,
    If you dont want system to read costing key zda then you need to maintain separate mataerial type (which would not be assigned to costing key, in copa configuration).
    There are two types of costings that you can perform, whether cost estimate in controlling or sale order costing at the time of sale order. if you want to perform sale order costing (which your current scenario look like) then you need to assign this specific material type to costing key of "sale order level costing".
    Regards

  • Moving Average Price and Credit Memo In value

    Hi gurus,
    I would like to know how to impact the AMP of a material when a credit memo in value is entered into the system. In this case, the credit memo is not entered through miro transaction (the credit memo is not connected to a MM flow), but is a FI document.
    Thanks beforehands

    If Credit memo is not connected to MM document, then I don't think credit memo will have any impact on material MAP. How FI posting will be linked to Material? i.e. there will not link between material, quantity and credit amount.
    [Example: MAP and credit memo|http://help.sap.com/saphelp_46c/helpdata/en/fc/85c5371e5db25fe10000009b38f8cf/frameset.htm]
    Thanks,

  • Return goods will impact the  Moving average price?

    Hi,
      When stock of a material is low,and we return the goods to our vendor from po(movement type 102), the Moving average price may change very large.for example, stock:11 PC, Moving average price:1;return qty(with po 102):10PC,return price:0.5,then the Moving average price bacome to 6. I went movement type 102 can't impact the Moving average price, is it possible?
      Thanks.

    Hi,
    This is not possible. As the name indicates, it is the Moving Average Price. When you receive goods / return goods, the system will take it into accoutn & change the MAP accordingly.
    Regards,
    Prashant Kolhatkar

  • Updation of Moving Average Price

    Dear Experts,
    My MM period is open for 2 months (i.e for July and August Now) . One of our raw material is Limestone.
    From July 1st there were several Receipts and Issues of limestone in SAP.
    In August 9th our survey team found that in our stock we have 25000 TON limestone excess. (Due to Callibiration error)
    i.e If the current stock in system was 10000  TON the real Physical stock in storage was 10000 + 25000 TON.
    We have created a Free of Cost PO for 25000 TON to account the excess quantity of Limestone in Stock.
    MIGO Goods Receipt for the Free of Cost PO was done on 31.07.2011.
    Because of the extra 25000 TON Free of Cost Limestone Receipt the Moving Average Price of the Material got Updated. (But only from 09-August-2011 not from 31-July-2011)
    I want system to calculate the new moving average price and update all the documents posted from 31-July-2011. MY MM period is not closed.
    Is it possible to do so and how. Please Help.
    Thanks

    Hi
    The physical inventory is carried out on the basis of stock management units.A stock management unit is a non-divisible part of a stock of materials for which a seperate book inventory exists.A stock management unit is uniquely defined by
    Material
    Plant,storage location
    Stock type
    Batch
    Special Stock
    Each stock management unit of a material is counted seperately,and the inventory diffreneces are posted per stock management unit.
    The physical inventory process comprises three phases
    1)Creation of physical inventory documents(MI01)
    2)Entry of Count(MI04)
    3)Posting the difference(MI07)
    1)In the first phase ,you create the physical inventory documents.SAP systems provide several procedures for mass-generation of PI documents.After selecting the stocks to be counted and creating the PI documents,you print out the documents in order to start the counting process.A physical inventory document cotains data that include
    >The plant and storage location in which the count has to take place
    >The date on which the count has to take place
    >The materials to be counted
    >the stock types to be counted
    >The status of the item
    >The status of the PI document
    When creating a PI document,you can specify a physical inventory nuber in the document header.This physical inventory number facilitates selection of the PI documents to be processed during entry of the count data,posting the diffrences, and in evaluations.
    2)Entering the physical inventory count:For the physical inventory count,you must print out the PI document and forward it to persons responsible for the count.You can enter the stock figures in the system with and without reference to a PI document.When entering the physical inventory count,you can enter a percentage variance of the count quantity from the book inventory,above which the system issues a warning message.
    3)You can post the inventory diffrences either via list of differences or via seperate transactions.When an inventory difference is posted,the system creates a material document and corrects the stock figures,and an accounting document recording the necessary accounting movements.
    Hope this will be helpful for you.
    Regards,
    Sandesh Sawant

  • FIFO with moving average price

    we are using for own produced goods "moving average price" and Material ledger. At month end we setlle production variance . The system also creates an entry for ML "price variance" (which is the percentage of the prodcution variance for the remained stock).
    When we run the document extract (MRF3), with the option of "Order settlement", the costs include not only the production variance but also the ML line. That is too high.
    When we run it without selecting "Order settlement" the adjustement is the reversal of the price variance (the ML line item). That is too low.
    The total costs should be only the total production costs.
    One cannot exlude it by the material movement as both "price variance" and "production variance" is not part of a material movement.
    Edited by: Hendrik585 on May 27, 2011 2:16 PM
    Edited by: Hendrik585 on Jun 5, 2011 11:36 PM

    hi,
    We need to follow the steps if we need to valuate our inventory by means of FIFO Scenario :
    1. In T-code OMWE, activate the balance sheet valuation as LIFO Valuation not active & FIFO Valuation active.
    2. In T-code MRLH, FIFO Maintained at company code or plant level.
    3. In T-code OMWL, set mean receipt price at valuation ares level if Plant or at company code level if at company code level.
    4. Configure FIFO Valuation ares for teh respective year.
    5. In T-code OMWP, Configure FIFO Method.
    6. In T-code OMW4, Movemnet type settings for FIFO maintained. Generally, no chnages made.
    7. Select material for FIFO in Tcode MRF4.
    8. Execute FIFO Valuation- Tcode MRF1.
    Hope it helps..
    Regards
    Priyanka.P

  • Batch Management with Moving Average Price

    Hi all,
    I got a question here. If we use batch management in SAP with our price control as 'V' (MAP for Moving Average Price), and we do good issue out by batch, will the system credit my stock based on MAP value or the actual value (actual PO price by batch)

    Any kind soul can helps me??

  • Moving Average Price Tolerance Report

    Is there any standard SAP report that can display moving average price variances?  I want to be able to see the percent change in the moving average price after each time that it changes.
    The report S_P00_07000139 displays the old moving average price and the new one, but there is no field for variance.  I know that OMR6 sets the tolerance keys to company codes, but is there any record of the VP key tolerance violations?
    The goal is to be able to see all of the materials that have a moving average price that changed by more than 10% from its last price.
    Thanks

    Hello, Uuklyph,
    if you are not satisfied with  S_P00_07000139l, the easiest way would be to create a query (tx SQ01/02/03) over table MSEG "Document Segment: Material", with custom formula for MAP change, calculating with field LBKUM "Total valuated stock before the posting" and SALK3 "Value of total valuated stock before the posting".
    Kind Regards
    TomT

  • Moving average price/standard price via iDoc

    Hi,
    I would like to distribute moving average price and standard price on price change (price changed via transaction event or MR21) to external system.
    Is there a way to accomplish iDoc (MATMAS) triggering on price change?
    Any idea on how to track changes?
    Searching through forums I found that MATMAS will not trigger on MAP change via transactional event, GR, GI...
    Thnx

    Dear Amit,
    yes - I understand how the system calculates the MAP. However, the receiving system is a SAP WMS - In WM there is no inventory management nor FI/CO. The valuation would always be zero. So I'm interested how can I update it via ALE?
    It works for the first time if I have no valuation (accounting) view in the material and I send an IDoc with the view definition segment and a value for VERPR. But updating isn't possible.
    Gunter

  • Moving average price & Standard price

    Hi every body
    For one material some times we use moving avareage price and standard price for that material
    Which scenerio we use this & why we have to use this,can any body explain me
    Thanks

    Hi Tarun
    Both, Moving average Price and Standard Price are Price Control Indicators.
    It Indicates the price control used to valuate the stock of a material.
    Standard Price : It is a constant price at which a material is valuated without taking goods movements and invoices into account. It is normally used for finished Products - Fert ( Vlauation Class - 7920)
    Moving Average Price : It is a price that changes in consequence of goods movements and the entry of invoices, and which is used to valuate a material.
    The moving average price is calculated by dividing the value of the material by the quantity of material in stock. It is automatically recalculated by the system after each goods movement or invoice entry.
    It is Normally used for Raw Materials -- ROH ( Valuation Class -3000)
    Rewards points ,if usefull
    Regards
    Palaniappan

  • Abnormality in Statistical Moving Average Price

    Hi All,
    I have a material maintained with standard price "S". Statistical Moving Average Price of the material has gone abnormally after 6 months of creation of material. Thisi is causing dump in posting goods movement as the system is calculating moving average price and there is a field over flow so the screen is going to dump while posting goods movement due to some price variance.
    I have seen MBEWH and MBEW, there I saw huge variances recorded in statistical MAP of material
    Here I know there is one SAP note suggests the solution how to correct this.
    But I am concerned with route cause analysis; I have verified the following and found every thing is OK, only there are small price variances which can never cause huge abnormality in statistical moving average price.
    I have verified
    (a) Changes in Material Master MAP field
    (b) MB51 - All goods movements related to that material - No abnormal price variances
    (c) ME2M to see in any purchasing documents, if price is given in USD or Euro; but it is not so
    Is there any thing I missed, could you please suggest.
    Rgds
    Raul

    this is usually caused by the fact that the PO price was wrong at the time when the GR was posted.
    This PO price gets changed later by purchasing guys to allow posting of the invoice without variance.
    Hence you have to check PO document change history to find the PO which was adjusted in the price.
    MR51 should show you that the GR was posted with a small value. Download MR51 to Excel and calculate the MAP for each line, this will show you which one has an exceptional MAP.
    Edited by: Jürgen L. on Sep 30, 2010 7:05 PM

Maybe you are looking for

  • Numbering query results with a line number in SQL*Plus

    Doesn't it stand to reason that in SQL*Plus there would be a way to number each query results sequentially with line numbers starting at 1 to n -- something option like from a SET command? I'm not talking about linesize.

  • Read Excel sheet in KM using API.

    Hi all, I kept one Excel sheet (Xsl file) in KM. I want to read that Excel (Xsl) file by using API in NWDS. How to read ? Is this possible Helpful answer will be appreciate Thanks & Regards Thillai J

  • HCM Processes & Forms : Migrating from JSPs to Web Dynpro for ABAP

    We are pretty well invested in HCM Processes and Forms.  We currently use JSP based forms as the UI for our notifications.   We do not, use Adobe Forms. For a number of reasons, we want to transition to forms based in Web Dynpro for ABAP. We want to

  • PDF Organization, Library?

    Hello, I have a collection of pdfs downloaded from the USPTO, specifically the Chapters from the MPEP, including a TOC pdf. It appears that the pdfs are linked, in the TOC document, there is a search link that opens up the full Acrobat search, from w

  • Can't change my region 3 disc drive to region 2

    I have an external disc drive for my MacBook Pro Retina (OS X Yosemite 10.10.2) - the drive isn't Apple but is supposedly designed for MacBooks. Its default setting was region 3 but I live in the UK and am therefore in region 2, so I had a dialog box